Nvidia Bets $100B on OpenAI as Big Tech Ramps Up AI Infrastructure Spending

The AI boom is quickly turning into a race for compute power and the numbers are staggering. Nvidia (NVDA, Financials) is preparing to invest as much as $100 billion in OpenAI, while also putting $5 billion into Intel (INTC, Financials), giving it a stake in one of its longtime rivals.

That move is just one part of a wave of mega-deals across the industry. Oracle (ORCL, Financials) has signed a $300 billion, multi-year cloud contract with OpenAI among the largest in history and is in discussions with Meta Platforms (META, Financials) on an additional $20 billion deal. Microsoft (MSFT, Financials) secured $17.4 billion in GPU infrastructure from Nebius Group, while Meta took a $14.3 billion stake in Scale AI, bringing its CEO Alexandr Wang into a larger role in the company's AI strategy.

Tesla (TSLA, Financials) reached a $16.5 billion chip supply agreement with Samsung Electronics, a move CEO Elon Musk said would power the company's next-generation AI processors. Amazon (AMZN, Financials) doubled its investment in Anthropic, committing another $4 billion to the OpenAI competitor. Google (GOOGL, Financials) struck a $10 billion cloud deal with Meta and licensed Windsurf's technology for $2.4 billion, bringing new AI code-generation tools in-house.

Stargate is the biggest of these projects. It is a partnership between SoftBank, OpenAI, and Oracle that plans to put up to $500 billion into AI data centers throughout the world.

Since ChatGPT came out in 2022, the need for AI computing power has grown quickly. It used to be a competition to design better models, but now it's a race to get the chips, servers, and power they require to run. Investors should know that infrastructure is the new battleground and that big tech is spending more than ever to make sure they don't fall behind.